Fund Policies & Fees

Fee Schedule

(effective September 22, 2015)

The fees and expenses charged by Midlands Community Foundation (“MCF”) in accordance with this schedule are intended to recoup a portion of the costs incurred by MCF in establishing and administering component funds. MCF reserves the right to pay such fees and expenses, and to maintain such amounts in the funds as deemed appropriate by MCF to constitute an adequate reserve for future anticipated fees and expenses, prior to making any distribution from the funds.

Standard Administrative Fees

Designated Funds

Start-up Fee

$100 due upon establishment of fund

Annual Fee*

1.0% per annum ($100 annual minimum) for endowment funds

1.5% per annum ($100 annual minimum) for expendable funds

Field of Interest Funds

Start-up Fee

$100 due upon establishment of fund by third party

Annual Fee*

1.0% per annum ($100 annual minimum)

Organizational Endowment Funds

Start-up Fee

$100 due upon establishment of fund

Annual Fee*

1.0% per annum ($100 annual minimum)

Donor Advised Funds

Start-up Fee

$100 due upon establishment of fund

Annual Fee*

1.5% per annum ($150 annual minimum)

Affiliated General Funds

Start-up Fee

$100 due upon establishment of fund

Annual Fee*

1.0% per annum ($100 annual minimum) for endowment funds

1.5% per annum ($100 annual minimum) for expendable funds

Scholarship Funds

Start-up Fee

$100 due upon establishment of fund

Annual Fee*

1.0% per annum ($100 annual minimum) for endowment funds

1.5% per annum ($100 annual minimum) for expendable funds

Expenses

Expenses incurred on behalf of a fund (e.g., postage, printing, etc.) are charged at actual cost. This is in addition to the standard administrative fees.

Investment Fees

MCF shall employ an institutional money manager to invest the funds. Fees charged by the fund manager shall be charged directly to the funds. This amount is in addition to the standard administrative fees and expenses.

Fees for Extraordinary Services

MCF may assess additional fees for the provision of extraordinary services requested of MCF in connection with administering the fund, including but not limited to: consulting services; extraordinary financial and governmental reporting; and transactional work related to non-cash gifts.

* The annual fee is equal to the listed percentage multiplied by the average market value of the fund assets for the previous 12-month period (but not less than the listed minimum), charged on a quarterly basis.

Spending Policy

Purpose

Midlands Community Foundation, a Nebraska nonprofit corporation (“MCF”), hereby establishes this Spending Policy (“Policy”) for the purpose of determining the amount of endowment funds that may be distributed for charitable purposes and used to pay fees and expenses to MCF in exchange for its administrative services.

Objectives

This Policy has the following financial objectives: (i) establish a spending policy based on a “total return” approach (i.e., allowing capital appreciation and income to be withdrawn for spending, while protecting principal), (ii) maintain the purchasing power of the long-term investment pool, (iii) apply a smoothing rule to mitigate the effects of short-term market volatility on spending, and (iv) maintain a steady support ratio.

Amount/Rate

Spending Amount: Except as provided below, the maximum amount that may be utilized for grants or disbursements from any endowment fund administered by MCF in any given year (based on MCF’s fiscal year) shall be equal to the then-current spending rate multiplied by the twelve (12) quarter average of the fair market value of such endowment fund as of June 30 each year (the “Maximum Amount”).

Current Spending Rate: As of May 1, 2010, the maximum spending rate for endowment funds shall equal 6% per annum (the “Spending Rate”).

Annual Review of Rate: The Spending Rate shall be reviewed and set periodically by the Board of Directors of MCF. In setting the Spending Rate, MCF shall take into consideration general economic conditions, the possible effects of inflation or deflation, the expected total return from income and the appreciation of investments, other resources of MCF, and the investment policy of MCF.

New Funds: A contribution of not less than $10,000.00 is the minimum amount required to create an endowment fund with MCF. For funds which have been administered by MCF for less than twelve (12) quarters, the Spending Rate shall be applied to the average fair market value over the number of completed calendar quarters the fund has been invested with MCF for purposes of determining the Maximum Amount; provided, however, no distributions or grants shall be made from an endowment fund (other than to pay fees and expenses) until such fund has been in existence for at least four (4) complete quarters.

Use of Funds

MCF may distribute from an endowment fund, annually or more often at the discretion of MCF, an amount not to exceed the Maximum Amount as deemed necessary or appropriate by MCF for carrying out the purposes of such fund. Distributions from such fund shall be applied first to cover applicable fees and expenses, with the balance available for grant making and distributions in accordance with the applicable fund agreement. To the extent the Maximum Amount is insufficient to cover applicable fees and expenses for a given year, MCF may pay such fees and expenses utilizing principal of the applicable fund.

Unspent Funds

To the extent MCF does not allocate or distribute an amount equal to the Maximum Amount in a given year, such funds will be available for expenditure in the following fiscal years, unless a written request is provided by the party who established such fund that the unspent amount be added to the principal of the fund.